Have you ever said something to your kids and thought to yourself, “Oh my god, I’m becoming just like my mom?” Or worse, somebody else tells you that you’ve inherited one of her annoying mannerisms, anxieties, or quirks.
It’s an eye-opening moment, especially if you’ve latched onto some of her more questionable financial habits. A lot of us fall into this pattern, but are we doomed to make financial mistakes we learn from our parents and teach them to our own kids?
Awareness is the first step to not becoming your parents’ double. The next? Checking out these tips; here’s some family-friendly advice to help you raise financially literate kids.
Involve Your Kids in the Budget
They don’t have to be the family’s accountant, solely responsible for balancing the books. But it’s a good idea to include them when you’re planning out your purchases. It gets them thinking about how money works, and more importantly, how far money goes to cover what they want.
Groceries are an easy way to get them involved, so you can work together to make a meal plan that fits your spending limit for the week.
Talk to Them about Credit
Teaching your kids how to borrow money responsibly is another lesson that will pay off in the future. One day, when they’re ready to move out or go to college, they’ll need to take out a student loan, installment loan, or line of credit.
Let them know personal loans may be a safe, convenient way to handle big purchases or emergencies, but they aren’t all created equally.
When it comes to personal loans, there are a lot of options, and most of them are designed for unexpected emergencies when their savings fall short. Visit https://www.moneykey.com/payday-loans-online/ together to scroll through how payday loans compare to installment loans. If they’re old enough, talk about how interest impacts what they owe.
Don’t Argue about Money in Front of Them
When tension is running high, it’s natural for conversations to get heated — especially if money’s involved. If you and your partner tend to fight about money, move out of your child’s earshot.
Overhearing any sort of argument can affect their emotional lives, and ones about money can impact their future relationship with finances.
Ditch the Piggybank
Having a piggybank is a great way to teach your kids about the value of saving, but it doesn’t teach them how to use money in the real world.
Once they’re older, they’ll have a mobile wallet, pay e-bills, and shop online. Unlike cash in a piggybank, invisible money in these digital accounts may be harder to manage if they’ve never been exposed to it.
Check out how these allowance apps get them used to dealing with online money in a way that sets them up for success in the future.
Start Talking about Money Now
As a busy parent, adding financial lessons into your packed schedule may seem impossible. Try not to think of it as a chore to pile onto your plate. Instead, think of it as an opportunity to spend more time with your kids. It might surprise you how fun it ends up being.